Performance Measurement Within a Project - Essay Example

On the other hand, economic value refers to the financial side of performance measurement in relation to costs and outcomes in a project, but focusing on the financial side. In relation to this, it is crucial to compare and contrast the performance measurement and discuss their significance in any given project. Similarities The balanced score card varies from means of implementation in one business scenario to the other. In this case, it is similar to many other models of performance measurement due to the need to adapt the different techniques to suit the different business scenarios.

None of the measurement methods can be applied as a wholesome without looking into the finer details of what each technique entails. For example, in the balanced score card technique, the implementation requires to focus on some key aspects such as financial outcomes, operational and marketing, as well as developmental inputs. By modifying the technique, it can successfully be implemented in any business environment. On the other hand, economic value approach is modified to meet the definite needs of a business in relation to shareholder value.

In the case of these two techniques, none can be employed singly without having to look at the needs of an organization. As a result, the two have to be adapted procedurally and according to the goals of the organization in order to come up with the desired results. In addition, business modeling as performance measuring technique requires tuning to fit the creation of the goals of the organization in question. This is concerning goal setting antics, which is associated with the quality of innovation.

As a result, business modeling works hand in hand with the existing conditions to come up with new or modify existing goals. All the three methods of performance measurement prove the need for integration in any given business before the expected results can be delivered; following the different needs of any given organization. In addition, another similarity of the all the three measurement techniques is in the little impact that the three methods have on the performance of the stock market and accounting (Ittner et al, 2003).

This is in spite of the level of satisfaction that different users of all the three techniques register. This means that all the three methods only work towards efficiency in the organization rather than visible result on the image of the organization in relation to stakeholders and accounts. In addition, using any one of the given methods on a short-term basis does not present any accurate results on accounting. This means that, for best results, all the three techniques should be used continually in order to achieve the desired result.

Differences However, in spite of all these, there are differences between the different methods of performance measurement. This is as seen in the case of the balanced score card, in which organizations using this technique tend to emphasize on the non-financial outcome than those that use other methods. On the other hand, the business model and economic value techniques tend to place emphasis on two aspects of measurement, which are non-financial value drivers and measure. In spite of this difference, there is a similarity between all the three methods in that they place significantly within satisfaction range than other methods used.

In addition, the balanced score card technique places the use of strategic cause-effect relations. In this case, it implies that business modeling and economic value